Why are airline profits soaring? [View All]

[Hannah Bell]

WALL STREET is jumping up and down because airlines are making money again--big money. The nine largest U.S. passenger airlines posted cumulative net income of $1.45 billion for the three months ending June 30, according to Air Transport News. This is four times the income generated last year. These are not exceptions.

But how did airlines turn their fortunes around, and what does it mean for passengers and employees who can both arguably be described as long-suffering victims of greed in the sky?

Aside from mounting industry consolidation, which generates its own profit dynamic resulting from a monopoly of the skies, the profitable excesses are being accomplished the old-fashioned way: charging more fees and higher ticket prices, cramming more people into each flight and reducing service staff.

Labor costs at the five network airlines have fallen some 33 percent, or $16 billion, since 2003, according to analyst Cordle....

http://socialistworker.org/2010/10/26/why-are-airline-profits-soaring